Global macro news this is not, but here's an interesting story.
Bond Guru and PIMCO co-founder Bill Gross Was Going to Be Fired for ‘Erratic Behavior,’ Says CNBC.
Barron's reports Gross Leaves Pimco for Janus; Knew He Was Being Shown the Door.
CNBC’s Andrew Ross Sorkin said on air, the fund world was experiencing “shock and surprise” at Gross’s move, which was highly unexpected to most.Janus Intraday
Dow Jones is running headlines that “Gross’s move pre-empted his dismissal,” citing an unnamed source.
Sorkin’s colleagues Jim Cramer and David Faber joked on the channel about how Gross will be giving up the trillions of fixed income investments he controlled at Pimco Total Return for a mere $12 billion or so invested by Janus in fixed income.
Sorkin reported that one factor may have been that Janus’s CEO, Richard Weil, used to be COO of Pimco, and that he left on a not-so-happy note from Pimco, which may mean there’s something personal for him in luring away Gross.
Gross is quoted as saying “I look forward to returning my full focus to the fixed income markets and investing, giving up many of the complexities that go with managing a large, complicated organization.”
Shares of Janus (JNS) soared from 11 to as high as 15.58 on the announcement. That's a 41.68% move. How much of that gain holds remains to be seen. Janus is currently up about 31.50%.
Anyone pick up any cheap options yesterday?
Mike "Mish" Shedlock
http://globaleconomicanalysis.blogspot.com
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